A Message from the President

Starting in April 2014, Clarion’s strengthened operating structure is facilitating organizational reforms aimed at expansion of our business activities in the global markets—where we expect our future growth to come from. In order to build an even stronger global governance structure, the Chairman & CEO of the Clarion group, as the Chief Executive Officer, is now charged with developing the business policy and strategy, while the President & COO, as the Chief Operating Officer, is responsible for implementing the business plan which is based on this policy and strategy.

Since our establishment in 1940, Clarion has developed a wide range of operations. Over the past 74 years, our employees have pulled together to create great products that only Clarion can offer, embodying unique idea and innovations. And, we have successfully built a well deserved and recognized reputation as a superior manufacturer of in-vehicle equipment. This achievement is a direct result of our ongoing efforts to realize Clarion's corporate philosophy, namely, "to improve society by seeking to develop the relationship between sound, information, and human interaction, and by creating products that meet those needs."

Moreover, we have adapted quickly to change, seizing upon the ever-changing nature of the environment to identify opportunities and successfully changing direction significantly, from a manufacturer of in-vehicle equipment to a provider of in-vehicle information systems.

With information increasingly becoming indispensible in people's daily lives, Clarion relentlessly pursues opportunities in the information field in order to enrich the lives of its customers by offering safe and secure in-vehicle access to information and entertainment. We plan to continue to grow in key areas that are even more deeply intertwined with the essential aspects of in-vehicle connectivity.

To achieve this, we intend to carry out structural reforms aimed at simultaneously strengthening our business base while laying the foundation for growth. And, we will forge ahead with initiatives to cultivate new product domains and become a truly global company with our eyes set on upcoming growth markets.

As for where we intend to concentrate our efforts further:

Fully understanding the characteristics of each market, we at Clarion will enhance our presence in the global markets as a trusted and valued partner, further expanding our marketing and technological capabilities in order to realize an even better connection between sound, information, and human interaction—which lies at the heart of Clarion’s global product development initiatives—and strive to deliver the very best that we can offer to our customers.

We will always remain true to the spirit of “We are Clarion”, moving forward united and meeting our responsibilities to the society as a member of the Hitachi Group, with the goal of growing as a company that is truly liked and valued by the society.

Chief Executive Officer Tatsuhiko Izumi

Chief Operations Officer Hidetoshi Kawamoto

Expansion From In-Vehicle Equipment Manufacturer To In-Vehicle Information System Provider

The market environment surrounding Clarion is in upheaval. Clarion will face this rapidly changing market while promptly adapting and evolving its business model. As such, our domain is being shifted from the previous car navigation and audio as an invehicle equipment manufacturer, to new business domains of “Automotive Cloud Information Network Service” including software and service, as well as “Vision System” business in the realm of safety and security.

Realizing value-added products and services that “connect” by letting people access the various information and service they need, in their daily lives, any time they want, in an optimized format, so they can feel more fully a sense of safety, security and comfort.

Managing the information required for vehicles, people and the environment, in a cohesive manner, to provide each of our customers with maximum value through safety and comfort. These are the things that Clarion will provide by simultaneously developing a comprehensive information management system and optimized user interface, and linking them together to provide uniquely attractive customer value. Moreover, Clarion will pursue the limitless potential of future innovation, such as contributing to social infrastructure through energy management aimed at lessening the burden on the environment.

Activities of a Truly Global Corporation

Clarion divides its global operations into five regions, namely Japan, the Americas (North/Central/South America), Europe, China, and ASEAN/India. Each region maintains its own control function regarding the region, including the functions of marketing, development, production, and sales. We will continue to provide each and every region with the ideal products and services, by organically combining various functions based on geographical region, customers, and products. Instead of controlling everything from the headquarters in Japan, all regions will have the rights and responsibilities that come with autonomy, and by swiftly coordinating with other regions, a highly global management organization is realized.

Contributing to the Creation of a Sustainable Society

Global warming is one of the most critical environmental issues facing our planet, and its effects appear in ways that cross national boundaries, at an increasingly alarming pace. As the earth experiences abrupt environmental changes, the importance of environmental measures as a corporate responsibility also rises, as we attempt to realize a sustainable, recycle-based society.

At Clarion, we have positioned these environmental issues as business challenges, and are implementing the Clarion Environmental Management Plan on a global scale including our overseas business activities. In keeping with our aspirations to be a “company that is truly needed by society”, global environmental considerations and activities such as these will be mission-critical to our enterprise.

To Our Stakeholders

To our customers, I wish to state that as society and technology continue to evolve, we will go on finding out user needs as quickly as possible, to provide unique products and services that incorporate the latest innovations. We will not rest as we continue to create products and services that offer true satisfaction, comfort and joy to our customers.

To our shareholders, I wish to report our intention to transform into a more robust corporate structure. We will continue to face lofty challenges to meet our new objectives.

To our suppliers and business partners, I would like to state that the entire Clarion Group is establishing “Automotive Cloud Information Network Service” as a new keystone for our business in addition to in-vehicle information equipment. As changes in the market environment, globalization, and technological advances all contribute to the accelerated pace of change in the world we live in, we will move as swiftly as possible to accommodate new challenges through an optimized corporate structure. Clarion promises to always be a clear thinker that is quick to action.

To our employees, let me say that the only way for Clarion to thrive is by sharing the values of each and every one of you and working diligently together. To help make this possible, we will be endeavoring to create a corporate environment where you can feel “I’m so glad to be a part of Clarion”.

Generating Synergy by Harnessing the Comprehensive Strengths of Hitachi Group

As a member of the Hitachi group, Clarion generates synergy in a variety of situations. We cooperate closely with Hitachi’s Information & Telecommunication Systems Company, and pool together their abundant experience and technological know-how in IT platforms, to provide the Cloud Service for Vehicle “Smart Access”.

We are also working closely with Hitachi Automotive Systems, Ltd., who holds a large market share in drive control systems. We are exploring new values by combination of vehicle information and Clarion’s in-car device so that our customers can be provided with a safer and more secure driving experience.

Hitachi, Ltd. owns and operates top-notch R&D facilities. By incorporating Hitachi’s high quality study results into Clarion’s products, including image-recognition technology to be used in Vision System products (camera compatible products), we at Clarion will be better able to introduce winning products into a fiercely competitive market.